Tuesday, 8 August 2000
California-based Lumenyte International Corporation, a specialist in the development and manufacture of plastic fibre optic lighting systems, has emerged from Chapter 11 bankruptcy proceedings with the confirmation on 3 August of its Plan of Reorganization. The case was filed after LIC's secured lender, Imperial Bank, declared a default claiming that LIC tangible net worth did not increase at the rate called for under Imperial's loan documents. Imperial subsequently moved for the appointment of a state court receiver which compelled LIC to institute the bankruptcy proceeding. The Board of Directors of LIC decided to institute the proceeding to allow LIC to restructure financial affairs through a plan of reorganization. LIC had approximately $1 million of general unsecured debt, as of the bankruptcy petition date, which was all current within agreed upon terms with LIC's vendors. LIC has been financially stable this fiscal year as the result of an internal financial restructuring which began around January and has paid the loan to Imperial in full.